Your income being higher could improve your application for credit, assuming your expenditure hasn't changed. This is because it makes your affordability look better – in other words, it looks like you can afford to take on more debt.
How much you earn isn’t something that appears on your credit report, but it’s often something banks and credit lenders will ask you when you go on to apply for a credit card.
2. Six years have passed
If you’ve got a blotch on your credit report, it won’t stay there forever. Things like missed payments, IVAs and CCJs will be wiped from your report six years after they happened. Plus, even if it’s not quite been six years yet, you can still impress lenders if you’ve shown good credit habits for a while.
3. You’ve paid off some debts
Have you paid off a big chunk of credit card debt? This is a good thing when it comes to credit scores, as it lowers your credit utilisation ratio.
In plain English, this just means that you’re using less of your available credit. Lenders like to see this because it shows you’re not totally depending on credit to get by every month, making you seem like a responsible and trustworthy candidate to lend to.
4. You’ve closed an old account
Similarly, closing down an old credit account can work in your favour too. This will reduce your total credit limit, which can help your credit application.
Why? Because having less available credit cards will reassure lenders that you won’t go on a big spending spree and rack up lots of debt all at once.
This works well for old accounts that you rarely use. If you have an account that you do regularly use and pay off in full, it makes sense to keep this open.
5. You’ve built a longer history
When you last applied for credit, how long had you been borrowing for? If you were new to the borrowing game (i.e. you had a thin credit history), they might have rejected you if they couldn’t see a long enough history of making payments on time.
If you’ve since been making payments on time and it’s been a good few months, you could have a stronger chance of being approved.
6. You’ve cut ties with old connections
Did you share a mortgage or a joint loan with someone? If you’ve now gone separate ways, you can also get rid of them on your credit report too.
Once the product is closed down, you can contact credit reference agencies and ask them to remove your old financial connection from your report.
If they had a sketchy borrowing past, having their name removed from your report could put lenders minds at ease – it shows that you won’t have to put your own finances at risk to help them out.
7. You signed up to vote
If you’ve taken part in recent elections or votes, your name will be on the electoral roll. This is really important when it comes to your credit report, as it helps lenders verify your identity and address.
Even if you’d rather not vote, it’s still a good idea to sign up to vote because it really helps your application get off the ground. It only takes minutes and it could be the difference between a yes or no!
How can I check if my eligibility has improved?
All of these things can have an effect on your credit score. A better credit score means a better chance of being accepted and more attractive credit deals. Simply log in to the three main UK credit reference agencies to see if your chances have improved.
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Intelligent Lending Ltd (Credit Broker). Capital One is the exclusive lender.